Aoxin Q&M expects operating loss for FY20 from China's prolonged closures

Published Fri, Jun 26, 2020 · 09:50 AM

CATALIST-LISTED Aoxin Q&M Dental Group said on Friday that it expects to register an operating loss for FY20 on the back of its close-to-two-month closure of businesses in China.

It said that gestation losses from newly opened dental hospitals and clinics, and the possibility of a second wave of infections are likely to weigh on the group's financial performance. Meanwhile, it will continue to monitor its revenue, cash flow and the evolving situation of Covid-19.

In addition, the implementation of additional safety measures against the virus will result in additional costs, and is likely to impact the group's financial results for FY20. It also said that it has no plans to open new hospitals or clinics for the year.

Aoxin Q&M was responding to shareholders' questions through a regulatory filing ahead of its annual general meeting to be held the coming Monday. .

In response to queries regarding its increased employee benefit expenses, Q&M said that it was due to the six new hospitals and polyclinics opened in FY19.

On whether there are plans to lay off staff if business does not pick up, Q&M said: "Management is actively assessing the operational performance of each hospital and polyclinic on a regular basis, and will fine tune the resources accordingly."